Another Trump Shakeup As Econ Aide Gary Cohn Quits White House

In his own statement, Trump praised Cohn for doing a superb job on tax reforms. "I am grateful to the president for giving me this opportunity and wish him and the Administration great success in the future".

Trump was quoted by New York Times as saying.

In a tweet late on Tuesday (March 6), the USA president said he would make a decision soon on appointing a new chief economic adviser. Trump said, "So many people want to come as they all want to be in the White House".

She was reporting directly to Mr Trump's chief economic adviser Gary Cohn, a former investment banker with Goldman Sachs and one of the president's closest aides. But the move ran into opposition within the administration, free-traders such as Cohn, and congressional Republican leaders such as speaker of the House Paul Ryan and other leading lawmakers.

"It's very important that there are advocates for this in the White House", Zypries said.

Local trade experts have warned that New Zealand's export-led economy is at risk, even though direct sales of aluminium and steel to the U.S. are only worth around $60 million.

It was expected in the White House and on Capitol Hill that Mr Cohn would be more likely to leave the administration once the tax bill was signed into law. The president wrote on Twitter that he would decide soon on a replacement for Mr. Cohn as director of the National Economic Council.

"Peter Navarro is a bomb-thrower and not a conventional economist in the slightest way", said Goolsbee. Other senior White House figures to have left the Trump administration include the strategist Steve Bannon, the chief of staff Reince Priebus, the press secretary Sean Spicer, the national security adviser Michael Flynn, the adviser Omarosa Manigault Newman and the former health secretary Tom Price. The economic nationalists now certainly have the upper hand and their camp is bigger.

Markets became convinced Tuesday that the tariffs might not be that bad and a trade war could be averted, but Cohn's departure could portend a rocky trading session on Wednesday.

Cohn's position with Trump has been tenuous since last summer, when Cohn rebuked the President over his comments about a white supremacist rally in Charlottesville, Virginia.

"Trade was the last straw", the same person said.

Cohn led the charge on a tax cut proposal approved by Congress in December, but lost the internal struggle against more protectionist voices over trade tariffs. The administration is still working on the exact details of the tariffs.

"It is hard to see households gaining confidence to run down their savings rate further in the current environment of low wages growth, slowing wealth accumulation (as home price growth weakens) and high debt levels", he said.

  • Leroy Wright